Legal updates and opinions
News / News
Salary discrimination not automatically unfair
Unfair discrimination on the basis of an inequality in pay – between male and female staff, or staff of different ethnic or racial groups or any other arbitrary ground – is unlawful in terms of the Employment Equity Act.
But the opposite position – that there can be fair discrimination – also applies.
Even if there is a difference between pay or terms and conditions (which legally would be recognised as the employer discriminating between an employer and another, comparator employee), this discrimination may not always be unfair and a conclusion of inequality cannot automatically be drawn.
Certainly, if an employee complained of pay discrimination and was female for example, and otherwise of the same status, seniority, experience level and educational qualification as a comparator male employee, the reason for the difference may be solely the fact that she is female.
This would be unfair discrimination, due to pay inequality, where the employees being compared perform the same work. However, the Employment Equity Act recognises all (and more) of the above factors, such as status, seniority, experience level and educational qualification, as fair reasons to justify the difference. Even though there may be a difference, it is not due to the first employee’s gender, and is therefore not unfair.
An additional factor that the Labour Court has recently taken into account, in determining whether a difference between a male and female employee is fair or unfair, is the “market forces defence.”
This position takes into account that one employee (in this case a male), had more years of service and seniority and a higher Private Security Industry Regulatory Authority (PSIRA) grade (relevant for the employer in this case).
The court recognised that he could command a higher salary due to these factors, and that the employer had paid him more than another female employee in a similar position because he asked for a higher salary based on his market value. The difference was found to be not unfair. Employers must be aware that this sensitive issue must be assessed on each case, and the mere fact that a difference exists, does not mean it is unfair.
Latest News
When silence becomes complicity: Constructive dismissal, workplace bullying and the cost of doing nothing
by Bradley Workman-Davies, Director Constructive dismissal remains one of the more difficult claims to prove in South African labour law. [...]
Nxele v Chairperson of the Disciplinary Hearing: Mudau NO and others, [2026] 6 BLLR 628 (LC): Clarifying the operation of section 188A(11) of the Labour Relations Act 66 of 1995
by Bankey Sono, Director and Sandile Mogweng, Candidate Attorney The Labour Court in Nxele v Chairperson of the Disciplinary Hearing: [...]
No grout about it: The LAC cements section 197 principles
by Bradley Workman-Davies, Director Section 197 of the Labour Relations Act has long been one of the most misunderstood and [...]
Making sense of death: A brief overview of inquest proceedings
by Dakalo Singo, Director and Head of Pro Bono By its very nature, death is tragic. The death of a [...]
Is cryptocurrency ‘capital’? Taking the Mangundhla judgment under the loop
by Deon Griessel, Director 1. Introduction Two Gauteng Division judgements have reached diametrically opposite conclusions on the question as to [...]
Agonists and APIs: High Court Injects Clarity into Compounding Debate
by Neil Kirby, Director and Head of Healthcare & Life Sciences and Slade van Rooyen, Associate The practice of compounding [...]
